IRS Updates: Form 1099 MISC Changes For The 2021 Tax Year

1. What are the New changes on 1099 MISC for the 2021 Tax Year?

• The most notable change is Form 1099-MISC’s new name. The Form 1099-MISC title is now changed to Miscellaneous Information. Previously it was Miscellaneous Income.

Changes on Box 7 of Form 1099 MISC

• Box 7 is now renamed: Payer made direct sales totaling $5,000 or more of consumer products to the recipient for resale.

Changes on Box 11 of Form 1099 MISC

• Box 11 has also been updated, payers should report Fish Purchased for Resale
  in this box.
• This was previously reported on Form 1099 NEC and now filers need to report on Form 1099 MISC Box 11

Changes in Electronic Filing Requirement

• There may be some changes to the e-filing requirements under the TaxPayers First Act of 2019. Under a recent IRS proposal, the current limit of 250 forms would be reduced to 100. The proposal has not been finalized yet, but there is a chance that it could affect your 2021 reporting.

Note: IRS suggests filers file your Form 1099 MISC electronically for quick processing and instant approval. Get started with Taxbandits now and E-file your Form 1099 MISC in Minutes
with the IRS

2. When is the Form 1099 MISC deadline?

• Form 1099-MISC has 3 different deadlines. One for sending out the recipient copies, one for paper filing and another for e-filing. In order to stay IRS compliant, payers need to file Form 1099-MISC, reporting miscellaneous Information before the deadline.
• Recipient copies must be distributed by January 31st. If you are reporting payments in box 8 or 10, the due date is February 15
• If you are paper filing copies with the IRS, the deadline is February 28
• If you are filing 1099-MISC electronically, the deadline is March 31

Note: If the filing deadline falls on a Saturday, Sunday, or legal holiday, the deadline automatically becomes the next business day.

3. Advantages of filing 1099 MISC Electronically with TaxBandits

E-filing with TaxBandits is a great way to ensure easy and accurate filing for the 2021 tax year. TaxBandits offers time-saving features like bulk uploads to streamline your filing process and prepaid credits to help you file faster and at the lowest price. Need a recipient copy solution? We offer both postal mailing and online access options!